President William Ruto of Kenya has launched the second phase of the Hustler fund targetting small investment groups (Chamas) and Savings and Credit Co-Operative Societies (Saccos).
According to him, loans being given in this phase of the hustler programme range from Sh50,000 (minimum) to Sh1 million. Named the Hustler Chama loan, the loan would be based on the average credit score of each of the group members. It is being offered to groups following the success of the Hustler Fund personal loan product
“We shall use policy and fintech to mainstream our way of life, and ensure that we all Kenyans are included in the entrepreneurial revolution,” he said.
At the recently concluded Pre Madaraka Day Embu Expo, Small and Micro Enterprise (SME) Cabinet Secretary Simon Chelugui threw more light on the Hustler Chama loan. He said, Kenyans should form 10-member groups using their mobile phones to access the funds. However, he added that the investment groups would be assessed to establish if any of the members had defaulted in the initial Hustler Fund.
“This product will enable a subscriber to onboard 10 members using their mobile phones. They don’t have to travel for registration. Once 10 members have been listed, a survey will be carried out to establish if any of the members defaulted. They will be advised and once they clear their dues, they will access loans for their business,” he said.
Established in December 2022 with a KES 50 billion initial allocation, the Hustler fund is a digital financial inclusion initiative designed to improve financial access to responsible finance for personal, micro, small, and medium-sized enterprises (MSMEs) in Kenya.
According to the President, the Hustler fund has recorded 42.5 million transactions through which 20.2 Million Kenyans have accessed nearly Sh30 billion and repaid close to Sh 20 billion with 7 million Kenyans constant customers since inception.
